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Thread: Fibonacci Trading

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#424 (permalink)

08-27-2008, 06:24 PM

Gregory McLeod Gregory McLeod is offline

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Quote:

Originally Posted by Boosted240sx

How so you use Fibonacci? To be more precise, where do you start it from when you drag it down?

It depends if you are looking at an uptrend or a downtrend. If there is a strong move up and prices start to fall back, then we would draw our fibs starting from the bottom/start of the move up to the highest point. Fibonacci support lines extend below the high. We anticipate that price will bounce from one of these levels and go higher. Our goal is to buy at one of these support levels with a stop just below. Since these levels are placed on the chart ahead of time, they are forecasting tools to clue us when to rejoin the trend.

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